In issuing stock,the term "spread" refers to:
A) the profit the managing investment dealer gets for an issue of stock.
B) the disparity between the initial asking price and the average price for the stock issued some months later.
C) the difference between what the corporation gets for new issues of stock and what the public pays for the stock.
D) the total cost to the corporation for issuing new stock.

Question

Quizplus · Accepted Answer

The "spread" in issuing stock refers to the difference between what the corporation receives for the new issues of stock and what the public ultimately pays for it. This difference is the profit earned by the managing investment dealer.

In Issuing Stock,the Term "Spread" Refers To